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Garment sector dereservation -- Rana hopeful of Cabinet approval

Our Bureau

NEW DELHI, July 16

DESPITE the disagreement within the NDA Government over the dereservation of garment sector, the Union Textiles Minister, Mr. Kashiram Rana, has asserted that his Ministry was ``eager'' to dereserve the garment sector from the exclusive domain of the sma ll-scale industries (SSIs) at the earliest.

``I am hopeful that dereservation of garments sector, one of the recommendations of the new textile policy which is to be announced shortly, will certainly be approved by the Cabinet,'' he said, while inaugurating the 25th India International Garment Fai r here.

Mr. Rana, who is part of the Group of Ministers (GOM), headed by the Union Home Minister, Mr. L.K. Advani, looking into dereservation of certain items reserved in the SSI list, also said that the new textile policy will fix an export target of $35 billio ns for the textile and clothing sector which is to be achieved within a five-year time-frame.

Noting that the Government has recognised garments as a thrust sector for exports, Mr. Rana said that garments exports grew by about 16 per cent in the first quarter of the current fiscal to $1.45 billions ($1.25 billions in April-June 1999). The total g arment exports recorded during 1999-2000 stood at $5.52 billions, contributing over 14 per cent of the country's total export earnings.

``Even though our textile sector is the largest forex earner in the country, our share in the global textile trade is only 2.9 per cent,'' he said, while pointing out that China alone commands a share of 26 per cent in the global textile and clothing tra de.

In his address, the Textiles Secretary, Mr. Anil Kumar, said that the apparel exports target of $25 billions by the year 2010 is ``well within the reach'' of the exporters. ``Instead of continuing to function along the beaten track of catering to the low er end of the world market, industry must graduate itself into higher price ranges,'' he said.

Pic.: Avisitor admiring the display at the India International Garment Fair in New Delhi on Sunday.